The Regional Distribution of Federal Fiscal Balances: Who Pays, Who Gets and Why It Matters

Robert Mansell, Mukesh Khanal and Trevor Tombe

SPP Research Papers, 2020, vol. 13, issue 14

Abstract: Any well-functioning federation is bound by shared values and by economic arrangements that ensure regions are better off inside the federation than outside it. But conflicts in both areas are inevitable, especially in a country as diverse as Canada. This paper focuses on the conflict within the Canadian federation involving the sharing of income and wealth, most often through federal revenue, spending and transfer policies. Many in the West, including more than 60 per cent of Alberta and Saskatchewan residents, believe they do not get a fair share from Confederation. A close look at the regional distribution of federal fiscal balances from 1961-2018 reveals very large differences

Date: 2020
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